GOVERNMENT OF INDIA
MINISTRY OF HEALTH AND FAMILY WELFARE
UNSTARRED QUESTION NO-883
Tax relief on treatment of serious diseases
883 . SHRI RASHEED MASOOD
Will the Minister of HEALTH AND FAMILY WELFARE be pleased to state:
(a) whether Government has formulated a policy for giving tax relaxation on the expenditure incurred in the treatment of cancer and other serious diseases;
(b) if so, the details thereof; and
(c) by when this policy will be implemented?
THE MINISTER OF HEALTH AND FAMILY WELFARE(SHRI GHULAM NABI AZAD)
(b) Under the provisions of section 80DDB of the Income-tax Act, 1961 (the ‘Act”), a deduction upto Rs.40,000/-, on account of medical treatment of specified diseases is allowed from the total income of the assessee. The limit is increased to Rs.60,000/- if the amount is paid on the treatment of a person who is of the age is 60 years or more. The diseases specified in the Rule 11DD of the Income-tax Rules, 1962 (the “Rules”) include malignant cancers and expenditure on its treatment is eligible for deduction under section 80 DDB.
Further, for the salaried class, as per section 17(2) of the Act, any amount paid by the employer in respect of any expenditure incurred by the employee on his medical treatment or treatment of any member of his family in respect of prescribed diseases is not treated as perquisite in the hands of the employee. The diseases prescribed under Rule 3A (2) of the Rules include cancer.
(c) Does not arise in view of (a) and (b) above.
Source: Rajya Sabha Q&A